The Charles Schwab Corporation (NYSE: SCHW) provides securities brokerage, banking through Schwab Bank, and related financial services to individual investors. The corporation also serves independent investment advisors and company benefit plan sponsors.
The Charles Schwab Corporation provides a full range of securities, brokerage, banking, money management and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC), offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products.
The Charles Schwab Corporation serves clients through two primary business segments.
- Investor Services provides retail brokerage and banking services, through Schwab Bank, to millions of individual investors.
- Institutional Services provides custodial, trading and support services to independent investment advisors. This business-to-business segment also provides retirement plan services, speciality brokerage services and mutual fund clearing services.
In addition, Schwab subsidiaries include Charles Schwab Investment Management, Inc., the investment advisor for Schwab’s proprietary funds, and Charles Schwab Bank, a federal savings bank. Schwab also supports the communities where we live and work through the private, nonprofit Charles Schwab Foundation.
For decades, The Charles Schwab Corporation has been an advocate for individual investors and the independent advisors who serve them.
- 1963: Chuck Schwab and two other partners launch Investment Indicator, an investment advisory newsletter. At its height, the newsletter had 3,000 subscribers, each paying $84 a year to subscribe.
- 1971: In April, the firm is incorporated in California as First Commander Corporation, a wholly-owned subsidiary of Commander Industries, Inc. to conduct a conventional broker-dealer securities business and publish the Schwab investment newsletter. In November, Chuck Schwab and four others buy all stock from Commander Industries, Inc.
- 1972: Chuck Schwab buys all stock from what was once Commander Industries.
- 1973: The corporate name changes to Charles Schwab & Co., Inc.
- 1974: In April, the SEC mandates a 13-month trial period for the deregulation of certain brokerage transactions.
1975: On May 1, The SEC mandates negotiated commission rates for all securities transactions. While many brokerages take the opportunity to raise commissions, Chuck seizes the opportunity to create a new kind of brokerage — a discount brokerage. In September, Schwab opens its first branch in Sacramento, CA.
- 1977: Schwab opens an office in Seattle — the first branch outside of California — and begins offering seminars for customers.
- 1978: Schwab extends service hours for customer service and quotes from 5:30 a.m. to 9:00 PST — an industry first. Client accounts total 45,000.
- 1979: In a “bet-the-company” move, Schwab invests in the BETA mainframe system. The success of this automated transaction and record-keeping system demonstrates that technology can be a key growth driver. Client accounts total 84,000.
- 1980: Schwab establishes the industry’s first 24-hour quotation service. Client accounts total 147,000.
- 1981: Schwab becomes a member of the NYSE. The firm opens its first location in Manhattan. Larry Stupski is named President and COO of the firm. Client accounts total 222,000.
- 1982: Schwab is the first to offer 24-hour, 7-day-a-week order entry and quote service. The company’s first international office opens in Hong Kong. The IRA account is introduced. Client accounts total 374,000.
- 1983: Bank of America acquires Schwab for $55 million. Schwab introduces the new Schwab One® asset management account. Client accounts surpass 500,000 and reach 648,000 by year-end.
- 1984: Schwab introduces Mutual Fund MarketPlace® with 140 no-load funds. The company launches SchwabQuotes® and The Equalizer® — a DOS-based technology solution that points the way toward an online future. Client accounts total 903,000. Client assets reach $5.1 billion.
- 1985: In August, Schwab records its 1-millionth client account. By year-end, client accounts reach 1.2 million with client assets of $7.6 billion.
- 1986: Schwab becomes the first to offer 24-hour, 7-day-a-week mutual fund trading service. Client assets reach $11.3 billion.
- 1987: In July, management leads a buyback from Bank of America for $280 million. In September, The Charles Schwab Corporation completes its initial public offering. In October, the market crashes and the Dow Jones Industrial Average loses 500 points, but at year-end client assets reach $14.3 billion. During the year, Schwab launches Financial Advisors Service to serve independent investment advisors.
- 1988: Financial Advisors Service exceeds $1 billion in client assets after just one year of business. At year-end, Schwab’s total client assets reach $17.7 billion.
- 1989: Schwab introduces TeleBroker®, an automated technology for telephone brokerage service. At year-end, total client assets reach $25.3 billion.
- 1990: The company introduces Schwab Funds® money market mutual funds, starting with $5 billion. The Indianapolis service centre opens as the first customer telephone service centre outside of San Francisco. The first Asia Pacific center opens with bilingual services. At year-end, total client assets reach $30.6 billion.
- 1991: The company introduces the Schwab 1000 Fund®, an equity index fund that reaches $191 million in client assets by year-end. Schwab opens its second call centre, in Denver. Schwab hosts the first annual National Financial Advisors Conference, later renamed IMPACT®. Schwab launches its first network TV advertising campaign. At year-end, total client assets reach $47.5 billion.
- 1992: Charles Schwab Trust Company® is created. The company introduces no-annual-fee IRA and no-transaction-fee Mutual Fund OneSource© service. Schwab opens its third call centre, in Phoenix. Latin American centre opens in Miami. At year-end, total client assets reach $65.6 billion.
- 1993: Charles Schwab Limited opens its first office in London. Employees move into a new Orlando service centre. At year-end, total client assets reach $95.8 billion.
- 1994: Spanish-language TeleBroker service is introduced. Total client assets rise above $100 billion mark to $122.6 billion at year-end.
- 1995: Schwab activates its first website at schwab.com®.
- 1996: Web trading goes live. Customers can trade listed and OTC stocks or check balances and the status of orders. The SchwabPlan is introduced, offering companies and their employees access to more than 1,300 mutual funds in a new, bundled 401(k) product. Schwab AdvisorSource® referral service is introduced nationally. At year-end, total client assets reach $253 billion.
- 1997: The Charles Schwab Corporation is added to S&P 500 Index. The website registers its 1 millionth online account. Schwab’s Hong Kong office reopens after being closed since the 1987 market crash. Mutual Fund Report Card is introduced with a single-page review of more than 7,700 mutual funds. In December, David Pottruck is named co-CEO of the corporation. At year-end, total client assets reach $437 billion.
- 1998: Two Canadian brokerages are acquired to create Charles Schwab Canada. Online accounts reach 2 million. TeleBroker adds voice technology. At year-end, total client assets reach $594 billion. Chuck Schwab releases his second book, Charles Schwab’s Guide to Financial Independence.
- 1999: Schwab launches after-hours trading for Nasdaq and select listed stocks.
- 2000: Schwab and U.S. Trust merge. The company also acquires CyBerCorp, Inc. to better serve active online traders. Schwab introduces pre-market trading for most Nasdaq and listed securities, with orders accepted from 7:45 a.m. to 9:15 a.m. (eastern time) Monday through Friday.
- 2001: CyBerCorp, Inc. changes its name to Cyber Trader® Inc. and enhances its service with improved software, educational tools and tiered pricing.
- 2002: Schwab launches an alternative for investment research, Schwab Equity Ratings®, and two new advisory services for affluent investors, Schwab Private Client™ and Schwab Advisor Network. Schwab Core Equity Fund and Schwab Hedged Equity Fund are introduced, with both using the Schwab Equity Ratings model.
- 2003: Charles Schwab Bank® launches, introducing price and service guarantees on home mortgage loans. U.S. Trust acquires State Street Corp.’s Private Asset Management business, creating a full-service wealth management firm serving the New England region.
- 2004: Schwab announces the dual listing of its common stock on Nasdaq and NYSE; later in the year, Schwab sells its seat on the NYSE.
- 2005: Schwab eliminates account service and order handling fees for retail accounts and small business retirement plans. The company gives all clients access to Schwab Equity Ratings, which inspire the launch of the Schwab Premier Equity Fund™ and new Schwab Portfolios™.
- 2006: Schwab lowers and simplifies pricing for equity, option, mutual fund and bond transactions. The firm announces a security guarantee, covering 100 per cent of account losses arising from unauthorized account activity.
- 2007: The corporation completes the acquisition of The 401(k) Company, a retirement plan provider in Austin, TX, and Charles Schwab Investment Management completes the acquisition of Global Real Analytics, LLC (GRA). Charles Schwab Bank introduces the High Yield Investor Checking™ account.
- 2008: Chuck Schwab is named chairman of the President’s Advisory Council on Financial Literacy. The company enhances Schwab.com, improves StreetSmart Pro, upgrades risk management tools on StreetSmart.com, and launches an online community focused on active trading.
- 2009: Schwab introduces Real Life Retirement™ Services with practical tools and resources for those nearing retirement. Charles Schwab Bank launches the Schwab Bank High Yield Investor Savings™ account.
- 2010: Schwab announces reductions in online equity trade commissions designed to provide greater value for investors, regardless of the frequency or size of their trades. The Charles Schwab Corporation lists shares on the New York Stock Exchange (NYSE).
- 2011: Schwab launched a new platform for active traders, StreetSmart Edge®, designed to simplify complex trading activities & provide a more intuitive experience.